Potomac cost of living index

In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
IndexPotomacMarylandNational
Cost of living index194115100
IndexPotomacMarylandNational
Goods & Services index9291100
Groceries index113112100
Health care index8688100
Housing index415154100
Transportation index108108100
Utilities index10199100
The above illustration supplies generalized information for the Potomac, MD cost of living index. Compared to other cities in Maryland and cities across the country, the cost of living index in Potomac, MD is 194, which is 68% higher than the Maryland average and 94% higher than that for the entire country. The index is comprised of the following criteria: cost of retail goods and services (33%), groceries (13%), health care (5%), housing (30%), cost of public/private transportation (9%) and utilities (10%). Everyday goods and services, along with housing account for 63 percent of the total cost of living index. Goods and services that are a necessity regardless of location provide an accurate general sense of the cost of living in one city versus another. As seen above, the cost of retail goods and services in Potomac, MD are 1% higher than the average for Maryland and 8% lower than the rest of the country.

Did you know?

  • The cost of living in Potomac is 68% higher than the Maryland average.
  • The cost of living in Potomac is 94% higher than the national average.
  • The cost of housing in Potomac is 315% higher than the national average.
  • Maryland general sales tax is 18% higher than the national average.
  • Maryland state income tax is 10% lower than the national average.

Find Real Estate Listings In Potomac

Location
Price
Bedrooms
Bathrooms
 

New Real Estate Listings In Potomac

Compare Potomac, MD Cost of living To Other Cities

Salary Calculator

This is how much you would need to earn in
Price difference in compared to
Cost of living index
Goods & Services index
Groceries index
Health care index
Housing index
Transportation index
Utilities index
Use the salary calculator to compare your current income in Potomac, MD to any other city in the country. The calculator will tell you how much income you would need to make in a particular city to live at the same level based on the cost of living in each city. For example, if the cost of living in the city you are looking to move to is higher than that of Potomac, MD, then you would need to earn a higher salary in order to enjoy the same standard of living. To use the Potomac, MD salary calculator, enter the name of the new city, then move the slider to your current salary level. The salary calculator will do the rest and let you know if your salary would need to increase or decrease for the new city. You will also see a complete overview of the cost of living.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$197,788$16,482$4,615$5,934
Renters$77,679$6,473$1,812$2,331
The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Potomac, MD as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Potomac, MD homeowners, is $197,788. This would allow for a maximum of $4,615 per month to be spent on housing costs. For renters, the median monthly income is $77,679 which would result in a maximum of $1,812 to be spent on rental costs.

Maryland Sales Tax

StateGeneral Sales TaxWith Max Surtax
Maryland6%6%

Maryland Income Tax

StateIncome Tax (Low)Income Tax (High)
Maryland2%5.75%
When you are determining the total cost of living in Potomac, MD you will want to make sure you consider both the Maryland sales tax and the Maryland income tax rates. Sales tax come in the form of taxes levied on both services and goods that are sold. The sales tax rates are different state to state and range from zero sales tax to higher than 7%. The sales tax in Maryland is 6%, with the highest surtax being 6%. Tax that is on income by the government is income tax. Different states have different income tax rates and these rates can be higher or lower dependent on the corresponding tax bracket. The state income tax rates are different state to state and range from no income tax to more than 9% income tax. The income tax rates in Maryland have a range from 2% to 5.75%.

Goods & Services

ItemPotomacNational avg.Difference
Haircut $15.75$14.597.9%
Beauty Salon $47.00$34.6835.5%
Toothpaste $2.18$2.4711.9%
Shampoo $0.99$1.023.1%
Movie $11.94$9.8721.0%
Bowling $5.30$4.3920.7%

Groceries

ItemPotomacNational avg.Difference
Ground Beef $2.99$4.4833.2%
Fried Chicken $1.59$1.468.6%
Milk $2.65$2.3612.4%
Potatoes $3.69$3.0620.5%
Pizza $8.00$9.2413.4%
Beer $8.59$8.630.5%

Health Care

ItemPotomacNational avg.Difference
Optometrist $71.67$99.7828.2%
Doctor $64.00$105.0339.1%
Dentist $81.75$88.707.8%
Ibuprofen $10.83$9.4115.1%
Lipitor $293.64$298.501.6%

Housing

ItemPotomacNational avg.Difference
Home Price $878,200.00$175,700.00399.8%
Avg. Mortgage Payment $2,313.93$1,081.03114.0%
Apartment Rent $1,994.00$920.00116.7%

Transportation

ItemPotomacNational avg.Difference
Gasoline $2.28$2.099.0%
Tire Balancing $48.00$45.296.0%

Utilities

ItemPotomacNational avg.Difference
All Electricity$178.68$170.804.6%
Phone $26.86$28.264.9%
Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

Nearby cities with low cost of living

City, StatePopulationCost of Living IndexNational Avg.
Cottage City, MD1,07099-1%
Silver Hill, MD5,3351055%
Hillcrest Heights, MD15,6041077%
Coral Hills, MD10,1961077%
Glassmanor, MD18,3891077%
Potomac, MD46,47519494%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
St. Louis Park, MN46,46611010%
Cedar Hill, TX46,4141022%
Bonita Springs, FL46,38411111%
Ceres, CA46,5701044%
Bel Air South, MD46,61411313%
Potomac, MD46,47519494%
Source: The Potomac, MD cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2016.